Judgment

B.P. Singh, J.—The short question involved in this appeal is whether the duty paid on spares of ropeway used for the purpose of transport­ing the crushed limestone from the mines located 4.2 kms. away to the factory, is entitled to Modvat credit.

2. The Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (for short ‘CEGAT’) by its impugned order of 25th March, 2003 disallowed the Modvat credit on the ground that the ropeway transports raw material from the mines to the factory premises and is not a material handling equipment within the factory premises. It is not disputed before us that the crushed lime stone is brought from the mines to the factory premises where it is deposited utilising the ropeway as a means of transportation.

3. An identical issue came up for consideration before the CEGAT, in J.K. Udaipur Udyog Ltd. Vs. CCE, Jaipur-II [2001(130) ELT 996. In that case the tribunal held, following the principles laid down in the case of CCE, Chennai Vs. Pepsico India Holdings Ltd. [2001(130) ELT 193], that the assessee was entitled to the Modvat credit. The Commissioner of Central Excise came up in appeal before this Court in Civil Appeal No. 1129/2003 impugni